Trump Administration Cancels $3 Billion Loan to Troubled Sunnova Energy
(Bloomberg) -- The Trump Administration terminated a $3 billion loan guarantee awarded to Sunnova Energy Intentional Inc. after the solar company told officials it no longer intended to tap into the facility.
The US Department of Energy canceled the loan obligation Friday, according to Sunnova. The company had used about $371 million of the government loan guarantee, part of billions of dollars of financing offered by the Biden Administration to accelerate the deployment of clean energy and combat climate change.
While President Donald Trump has worked to undermine federal support for the clean energy industry including freezing funding, halting permits and backing Republican efforts to undo former President Biden’s signature climate legislation, Sunnova’s troubles preceded the change in administation.
The solar developer has been laying the groundwork for a bankruptcy filing that could come within weeks, Bloomberg News reported last week. Sunnova ran into trouble with high interest rates and lower state incentives that made it more expensive for homeowners to buy or lease panels. The residential solar business is now facing the prospect of losing generous tax credits under the Republican tax and spending bill that passed the US House last week.
Sunnova has tapped less than $400 million of the loan guarantee, the company said. Those funds underwrite bonds issued to fund the installation of certain residential solar energy systems, according to Sunnova.
The Energy Department didn’t immediately return a request for comment.
(Updates with details of loan draw in fifth paragraph)
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